Xiaomi SU7 outsells Tesla Model 3 in China

The electric vehicle market in China is going through a dynamic shift, with domestic manufacturers like Xiaomi gaining traction against established players. In December 2024, Xiaomi SU7 outsold the Tesla Model 3 - a significant milestone for the new entrant in the EV arena.

This actually isn't the first time the SU7 has surpassed the Model 3 in sales. In the past nine months, Xiaomi's electric sedan has outperformed its Tesla counterpart four times. This indicates either a growing preference for the homegrown EV, or Model 3's latest refresh isn't really working. Tesla enjoys strong brand recognition and has an established presence in the Chinese market, suggesting that customers might simply see the SU7 as a better choice.

The Xiaomi SU7, launched in March 2024, has quickly gained popularity with its competitive pricing and impressive features. Starting at RMB 215,900 ($29,640) for the Standard version, the SU7 undercuts the Tesla Model 3's starting price of RMB 235,500 ($32,200) by nearly 10%.

In contrast to Xiaomi, Tesla recently increased the prices of all three Model 3 variants in China, potentially contributing to its declining sales. Together with the growing competition from domestic EV makers, the price hike poses quite a challenge to Tesla's dominance in the Chinese market.

This by no means is the end of Tesla. The success of the Xiaomi SU7 only highlights how domestic manufacturers like Xiaomi leverage their understanding of local consumer preferences. They are offering compelling products at competitive prices, and putting a lot of pressure on international brands like Tesla.

The competition between Xiaomi and Tesla is expected to intensify with the upcoming launch of Xiaomi's second EV model, the YU7 SUV. With the release planned for mid-2025, the YU7 will compete directly with Tesla's Model Y, adding to Tesla's headache.

Via